GOJEK, How to keep you EXIST???

To

: Prof. Djoko Susanto. M.S.A

From

: Diah Tantri, Ahmad P., Franklin D., Ramadiany F., and Wira Z. Qumullah

Subject

: Proposal to Go-Jeks offering recommendation strategyGOJEK, How to keep

you EXIST???
Introduction
Theres a fenomenal in Indonesia that can change mindset of businsess entry level.
Wheres corporation dont have a tangible asset for priority of production. They can choose
cost of funding with private equity either capital venture from institution non bank instead
debt offer from bank. It make a significant changing impact from konventional to online
platform. Lecture of Financial Risk Manajemen , mr. Bowo Setiyono, M.Com show to wira
how the highest economic growth in southeast asia, exactly Indonesia. Because Indonesia
predictable in 2030 get a bonus demographic and can challenging China where is the most
grateful economic and stabilization of politic.
Another way his(mr. Bowo Setiyono) say, bank central in America, europa, japan and
korea impose low interest rate even minus (japan). Because of that can change the culture
from risk avers to risk taking and empowering growth of real sector for shore up economic
instead moneter sector.
Finally Indonesia decided for potential market and mr, jokowi make a policy paket
14 economic to improve e-commerce business in roadmap industry Indonesia. Visi from mr
jokowi is make the higest digital economic at 2020. And then Indonesia is the largest user of
media sosial and internet data reach 94.6 million people and 71 million have a smartphone.
Company OverviewBackgound
Go-Jek is a social enterprise that partners with group experienced and trustworthy
motorcycle taxi services (called ojek) to drivers to deliver a one-stop shop convenience
service for Indonesians. Founded in 2011 by Nadiem Makarim and Michaelangelo Moran,
Go-Jek has become the most popular technology-driven personal ride-booking app in
Indonesia.
In May 2016, Go-Jek launched Gopay which is an additional service to compliment
and to ease customers from traditional transaction. Goride, Gocar, Gosend, and Go-food users
will get a discount of up to 50fifty percent when a payment transaction through Gopay and

for some partnered restaurants in Go-food the delivery fee will be free with Go-pay. Very
obvious that this is a strategic move to encourage the use Gojek and their digital payment.he
Competitive pricing, reliability, and generally good service quality, has attracted
increasing numbers of customer to Go-Jek. After it launched, On June 2015, the flat rate
promo of is ten thousandIDR 10,000rupiah for all services on June 2015, the search for GoJek has soared and it has become the most searched brand compared to the famous personal
ride-booking app, such as GrabBike, BlueJek and Uber.
Iin May 2016,Ggo-Jjek launched Ggopay in which is an additional to service to
compliment and to ease customers from traditional transaction.Goride, Gocar, Gosend, and
Go-food users will get a discount of up to 50 percent when a payment transaction through
Gopay and for some cooperationpartnered restaurants in Go-food the delivery fee will be free
right Short message service if usinwithg Go-pay. Very obvious that this is a strategic move to
encourage the use Gojek and their digital payment.The rising popularity of Go-Jek has been
rapidly rising since it launched. But, the existence of Go-Jek not escape from problems.
Flourishing in Jakarta also makes Go-Jek media spotlight. The polemic emerged from the
others motorcycle taxi online. They feel that their income reduced since many competitors
are exist.
Problem
Price war is general strategic that taken by company to penetrate market.It leads to
more option for consumer. However, this strategic most often strike industries where there is
both heavy competition and several comparable services.
Many motorcycle taxi service use cutting price with discount or others promo to
running this strategyand if we learn from price wars that happened in other industry such as
telecommunication, car taxi and aviation industry, someday Government will take preventive
action to avoid worse situation that probably affect by price wars.
Beside of the strategy that can be use to compete their rival,as a pioneer of motorcycle taxi
service in Indonesia, Go-Jek should take another strategy to face government regulation.
In August 2016, Gojek hasan injection for of new investmentthere were so fantastic that 550
Million US Dollars or sekitaar Rp. 7.2 Ttrillion rupiah from of global consortium consisting
of a number of new investors, including KKR, Warburg Pincus, Farallon Capital, and Capital

Group Markets.nvestor previously, namely Sequoia India, Northstar Group, DST Global, NSI
Ventures, Rakuten Ventures, and Formation Group , also participated in funding this session.
The new investment is acceptable Go-Jek will be used to grow the scale of operations and the
quality of its services, including motorcycle taxi, food delivery, courier, e-wallet (Go-Pay),
and car called Go-Car.
Not long after the Go-Jek get fresh cash back, Go-Jek provide tariff reduction from
twelve thousand 12,000 to four thousand 4,000 rupiah and . Yes 4,000 rupiah was not
included when we paid usinge Go-Pay which receive twenty percent 20% to three thousand
3,000 rupiah. Amazing and unbelievable in my opinion. Grab that was being above the wind
because everywhere there Grab Grab for cheaper rates, it is time Gojek rise back.
But one thing weI can conclude, . tThis business tough competition, provide benefits
to customers. Price war is general strategic that taken by company to penetrate market. It
leads to more option for consumer. However, this strategic most often strike industries where
there is both heavy competition and several comparable services. Many motorcycle taxi
service use cutting price with discount or others promo to running this strategy and if we
learn from price wars that happened in other industry such as telecommunication, car taxi and
aviation industry, someday Government will take preventive action to avoid worse situation
that probably affect by price wars. Beside of the strategy that can be use to compete their
rival, as a pioneer of motorcycle taxi service in Indonesia, Go-Jek should take another
strategy to face government regulation.
Now the customer can ride motorcycles at a very cheap rate, very friendly service,
and plenty of choice. Staying a few clicks, and the motorcycle would come in where we are.
Feasibility
Since we have a lot of research and also already know anything about the problem, hopefully
we will finish this project on time.
Topics to Investigate
Beside of price strategy, marketing strategy is a key to make customer as our captive market
that will give advantageous in our service.

So that, in this examine well following question more briefly:

How do advertise improve Go-Jeks brand awareness?

Are consumer sensitivity price of motorcycle taxi service is high?
Are consumer has commit in one motorcycle taxi provider?
How gojek use the valuation indicator instead cashflow and margin of profit?

Audience
Our primary audience will be Go-Jek Management that represented by Nadiem
Makariem, CEO of Go-Jek Indonesia. . He has the power to decide whether or not to
implement our recommendation..
Our secondary audience will be You, which interested in our research method, our
logic thinking, our writing style and experienced in this issued. Therefore you will support
our recommendation.
Methods
Beside of literature study, we examine our question using consumer interview that use
motorcycle taxi in their daily activity. There are literature list that will use:

Kotler and Keller. Marketing Management. 2012x.

Online research
Brigham, Eugene F, Essentials of Financial Management 2013

Qualifications and Resources

As a team, we have a knowledge and skill to solve this issue with from business education
perspective, business research method, and professional experience. Beside of that, we have
familiar with this business issue.

Dividend growth model:

Equity valuation is a subject of great depth and complexity. Valuation entails understanding a
business model. For the purpose of the basic mechanics and application of the dividen
discount model which utilizes a firm;s cost of capital to discount dividends to arrive at an
approximate instrinsic value of the company.
Theres two point that you can choose. Its dividend or capital gain. Dividends is the payments
made to stockholders when the company distributes some of its earnings to stockholders.
Capital gain are when you realize capital capital apreciaation in a stock when you actually
sell it.
Solution
Gojek have an option to go public, such as sell their stock to the market.(IPO) and it can
improve the equity of the company and investor get a money from selling their stock.
Work Schedule
Activity
Writing the proposal report

Total Time
24 hours

Completion Date
23-Nov-16

Gathering Information

48 hours

26-Nov-16

Analyzing Information

12 hours

30-Nov-16

Organizing Information

5 hours

2-Dec-16

Writing the progress report

12 hours

5-Dec-16

Writing the Draft/Visual

12 hours

9-Dec-16

Revising the Final Report

12 hours

15-Dec-16

Editing the Final Report

Proofreading the Final
Report

7 hours

21-Dec-16

3 hours

12-Jan-17

Call to Action
We wouldshould like to discuss our proposal with you and would appreciate any comments
or suggestions to help us improve our report during progress. Please Approve our proposal so
we can continue our project.Should you agree to the provisions of this proposal, please give
your confirmation by written letter or email.

We are very proud to have this opportunity to provide our service to Go-Jek and we will be
glad to provide any other additional information required regarding our proposal. We believe
that this cooperation can be maintained for long time for mutual benefits.